Arrange the Following in the Correct Pecking Order, from Highest

question 48

Multiple Choice

Arrange the following in the correct pecking order, from highest to lowest: I. Short-term debt
II. New equity financing
III. Long-term debt
IV. Retained earnings

• A)I, III, IV, II
• B)IV, III, I, II
• C)II, IV, III, I
• D)IV, I, III, II

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Definitions:

Price Insensitivity

A condition where the demand for a product is unresponsive or less sensitive to changes in its price.

Product Sampling

A promotional tactic where customers are given a sample of a product for free with the goal of increasing awareness or boosting sales.

Initial Purchase

The first time a customer buys a product or service from a business, marking the beginning of the consumer-brand relationship.

Product Life Cycle

The progression of a product through different stages from introduction to growth, maturity, and decline, each affecting the marketing strategy and business decisions.